My deceased mother in-law is owed a refund. Doing her tax return has raised some odd questions regarding Social Security and the final payment.

[RLongIslandA]

The 1099-R shows the final payment being returned. It later was issued to my wife as her heir. When doing the return for my mother in-law it looks like her refund includes that extra dollar amount???

[RobertB4444 · Accepted solution]

The question you are asking requires someone to look at your return and figure out what is carrying over into the refund.  You are probably better off having someone walk through the return with you to look at your entries so I recommend getting live expert help.

Here is a link to finding a TurboTax expert.

However, that requires upgrading your product which may be an expense you don't want.  In that case you can call an expert and ask questions over the phone.

Here is a link to the TurboTax Phone Number.

[fanfare]

what do you mean paid to your wife.?

Social Security doesn't make inheritance payments to heirs.

Did the executor give her a check for that amount ?

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Income in Respect of a Decedent

"All income the decedent would have received had death not occurred that was not properly includible on the final return, discussed earlier, is income in respect of a decedent.

How To Report

Income in respect of a decedent must be included in the income of one of the following.

• The decedent's estate, if the estate receives it.
• The beneficiary, if the right to income is passed directly to the beneficiary and the beneficiary receives it.
• Any person to whom the estate properly distributes the right to receive it."

[RLongIslandA]

@RobertB4444 Thanks for the info. I think that may be best. I have always done my own and her taxes. But this situation is not clear to me and I want to get it right. 

[dmertz]

If the decedent is owed Social Security money after death, Social Security indeed makes payments to the surviving spouse or children and is taxable to whomever it is paid.  For example, if a decedent dies mid-year but Social Security makes a corrective payment after the date of death (as they often do in November), the payment is made and is taxable to the spouse or children.  If payment was made to the decedent after the date of death but is later returned, Social Security should not include it on the decedent's SSA-1099.